Presentation 2016, H1 Aktif Bank at a Glance 2 Aktif Bank-The Biggest Privately Owned Investment Bank of Turkey Aktif Bank with its ‘New Generation Banking’ concept achieved to be a platform integrated to thousands of customer touch points in which financial & non-financial products are being served The Bank invested in various lines of retail sector and achieved remarkable growth rates 126 folds asset growth since 2006 15 K (Asset Size= 2006: TL 67 mn, 2016 H1 : TL 8.5 bn) Customer Touch Despite ongoing investments, strong revenue generation & above sector Points profitability ratios Unrivaled strategic positioning thanks to investments in diversified and complementary businesses in various retail based sectors TL 8.5 bn Branchless but with the widest distribution network – 15 K customer touch Total Assets points Significant exclusivities in areas like transportation, sports & entertainment, insurance, N’Kolay Points and cash registry business 86 86 international reputable awards in last five years for its innovative products, International Awards channels and solutions in 5 Years Solid Balance Sheet Growth… Heavy investments on human capital & technology Asset size (TL Mn) 8.501 7.381 CAGR 6.260 5.104 Asset size grew 126 times 3.520 from 2006 to 2016 H1 2.553 1.479 578 67 112 252 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 H1 Total Loans (TL Mn) 5.071 4.724 4.030 Climbed to 22th place in CAGR 3.585 terms of asset size from 2.367 1.676 42nd just in10 years! 722 297 41 75 118 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 H1 …Without Sacrificing from the Profitability High profitability despite continuous investments on human capital & technology Net annual profit (TL MN) Revenue (TL MN) CAGR CAGR 453 93,8 82,2 80,8 80,9 373 375 54,7 50,0 207 224 208 35,1 107 9,3 47 5,2 2,7 1,6 14 13 23 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 H1 H1 Peer Comparison 2016 H1 Range by Net Profit Bank Name Total Assets (TRY mn) Equity (TRY mn) ROAA ROAE Asset Size (TRY mn) Aktif Bank 22 8,501 1,016 55 1.36% 11.19% Fibabanka 19 12,816 1,098 49 0.81% 9.16% Burgan Bank 20 11,948 1,029 20 0.36% 3.94% Alternatif Bank 18 13,989 1,127 (54) -0.80% -10.25% Şeker Bank 15 23,150 2,594 21 0.16% 1.47% Odea Bank 13 31,014 2,332 60 0,2% 3,7% Aktif Bank Became a Retail Platform Ekent • Smart Cities & Electronic Payment Systems & Stadium Access Control Systems N Kolay Points (Shop-in-shop) • Payment & Transaction Points Aktif Bank’s N Kolay (Store) investments in • Payment & Transaction Stores lucrative sectors & Sigortayeri unrivaled subsidiary • Insurance Brokerage Asset portfolio made the • Card Programmes Mgmt & Sports & Events & Entertainment – Bank a true retail Ticketing and Organization platform Pavo • POS Device Sales & VAS Applications UPT • Money Transfers ECHOPOS • New Solutions to Payment Systems HALİÇ LEASING • New Leasing Advantages to SME’s MÜKAFAT • Asset Management Company The Businesses in Aktif Bank’s Domain Aktif Bank Raises Required Funds for Growth with its Branchless & Unique Model Total amount of issued bonds (TL bn) Channel/Customer 3,2 3,4 3,4 2,9 1,9 0,9 0,7 0,1 . Pension Funds 2009 2010 2011 2012 2013 2014 2015 2016 Bank Bonds H1 . Asset Total amount of issued ABS (TL mn) Management 672 . Turkey’s first domestic 517 452 Companies asset backed securities 187 . AAA rated fixed income Asset Backed . Qualified securities Securities 2011 2012 2013 2014 Investors . Banks Total amount of issued Sukuk (TL mn) . Direct Sales 200 . First Sukuk practice for 100 project financing in Turkey 50 Islamic Products 2013 2014 2015 Consumer Finance Business is also Driven by Aktif Bank With is branchless & unique model Aktif Bank is the 14th largest bank in consumer loans market and the market leader in consumer finance operations . General purpose loans from PTT since 2010 . 699K loan disbursements through PTT since 2013 (85 K in 2015, 82 K in 2016 H1) . Competitors Denizbank, ING, TEB, Odeabank, Fibabank . Aktif Bank’s disbursements in PTT corresponds to 47% market share in 2016 H1 (70% in 2013) . Loan disbursement since 2009 through white appliance & furniture dealers . Dealer loans are offered to individuals through mass retailers by bundling the loan with the product . Gained momentum after amendments in consumer law against installments by credit cards effective from Feb. 2014 . 3,560 dealers . Cooperation with largest mass retailers of Turkish market The Businesses in Subsidiaries’ Domain E-Kent is the Biggest Systems Integrator in the Region E-Kent provides transportation infrastructure services throughout Turkey Akçakoca SAKARYA Merzifon TOKAT BALIKESİR BURSA Serves a population DÜZCE Konuralp ÇANKIRI of 45 Million Edremit ANKARA BİTLİS Simav KÜTAHYA UŞAK KAYSERİ Kahta AKSARAY G.ANTEP Fethiye Anamur 35 locations including Ankara, Bursa, Major revenue streams through; Gaziantep & Kayseri . city card sales . transaction commissions Additionally E-Kent is the systems integrator of Turkish Football Federation’s E-ticket project. The company succeeded to integrate the e-ticket stadium entrance & surveillance systems in a very limited time horizon with a great success and appreciated by all related parties of the project Back Streets are Occupied by N Kolay Points N Kolay Points are located in small groceries and petrol stations with ‘shop in shop’ concept – corner version of distribution strategy Prepaid Invoice GSM top-up payment Money transfer Transportation top-up 2.1 Mn monthly transactions Presence in every city in Turkey w/ 3,852 points Soccer tickets Insurance application ‘Award winning distribution strategy’ Flight / Bus / IDO Ticket N’Kolay Stores - High Street Presence Strategy of Aktif Bank Store Version of N’Kolay Points . N’Kolay shops exist on busy, commercial sections of the towns and already have a customer traffic with regard to bill payments Invoice Payment Transportation Top-up . N’Kolay stores already had 64 mn bill Money Transfer payment collections since 2014 and this Flight / Bus/ Ferry Ticket potential is being supplemented by other Football Ticket Insurance products served by N’Kolay terminals GSM Top-up Catalogue Sales Sigortayeri is the Solution for the Distribution Bottleneck in Insurance Sector . Sigortayeri sells policies of more than 32 insurance companies with price comparison tools through; . Digital Channels . Sigortayeri.com, renovated website launched in Sep. 14 . Mobile App launched in February 2015 . Physical Channels . PTT branches, partner dealers (such as Arçelik, Vestel, BSH, Bellona, Kelebek), N Kolay Points and Stores etc. Telemarketing & Call Center . SMS (3950): The only one who can make offers only through SMS’s . Provides real customer value in insurance sector because; 146 K policies . Enables best price & comparison mechanisms sold in 2015 . Serves the most convenient distribution network . Maximizes customer satisfaction by being the single direct 117 K policies contact for the customer and takes care of customer needs sold in 2016 H1 Passo Becomes Ticketing Platform of Turkey Passo.com.tr being the emerging leading sports & entertainment ticketing platform of Turkey is being run by an affiliate of Aktif Bank, Asset A.Ş. 2.5 mn ticketing annually 92 K ticket sold in 2016 H1 . Exclusive provider of ticketing services of Turkish Super League & Turkish First Division . Merchandising, marketing operations will be other income sources Passolig Programme is an Emerging Brand in Cards Market Aktif Bank, being the exclusive provider of Turkish Football Leagues’ e-ticketing and loyalty programs introduced its card programs in April 2014 2 Million+ Card Sold . Credit Card . Prepaid Card . Debit Card Other programmes Unique exlusivities Cash advance Acces to stadiums Loyalty The most exclusive Use in public transportation card programme Installments Sport and event tickets Campaigns in the card PAVO Operates in a High Potential Market with a Strong Partner Pavo A.Ş. (which is exclusive partner of Ingenico and has 60% market share in Turkish POS devices market) aims to be major market player In addition to the potential of cash registry market, PAVO will be serving Value Added Services through thousands of merchants such as transportation top-up, bill payments, ticket sales etc. UPT is the First Global Money Transfer Brand of Turkey UPT – ‘Ucuz Para Transferi’ (Cheap Payment Transfer – Turkish Brand) . Through PTT branches . N Kolay Points & Stores 540 K Domestic 310 K Domestic Transfers in 2015 Transfers in 2016 H1 UPT – ‘Universal Payment Transfers’ International Brand . Global coverage, 500 K points . 9 Money Post Offices The business has ben carved out from Aktif Bank and established as a separate subsidiary in June 2014 422 K International 332 K International Transfers in 2015 Transfers in 2016 H1 IFC (Istanbul Finance Center) Istanbul International Financial Center Expected Rev : $ 1000 Mn $ 180 Mn Cash – $ 32 Mn Non Cash Projected Area (IFC) : 303.000 m2 Corporate Banking Credits Revenues 2 Selling Area : 233.000 m Profit Sharing w/ Emlak Girişim A.Ş. Special Area : 940.000 m2 . Direct financing model for cash and non-cash needs of the project before the self-financing of sales . Required funds are provided for project company «İFM A.Ş.» as a subsidiary company of Emlak Girişim A.Ş. SUKUK 1st 2nd 3rd Issuance Issuence Issuance Amount (TL) 100 Mn 100 Mn 100 Mn Issuance Date May‘13 Nov.‘13 Sep.‘14 Reimbursement May‘14 Nov.‘14 Sep.‘15 Date Rate 8.78% 13.12% 12.70% Coupon On term 6 month 6 month Distribution Network & Exclusivities Aktif Bank has Built Significant Entry Barriers for Potential Competitors through Widespread Network and Exclusivities in Lucrative Areas Distribution Exclusivities .